A Long-Term Care Update

{2:06 minutes to read} In the world of long-term care, there always seems to be a change on the horizon. Genworth, the largest carrier of long-term care insurance in America, reported a very large single quarter loss last year. The insurance company has just agreed to be purchased by China Oceanwide for $2.7 billion. (The agreement is in place but has yet to be approved by regulators.)

We are now in a perfect-storm situation of low interest rates and increased life longevity, which makes it very challenging for traditional long-term care products to be price stabilized. In addition to the Genworth news, Lincoln, the largest provider of single-premium, hybrid-life, long-term care insurance announced rate increases in New York.

Because of that, we have been moving to alternative long-term care solutions. One such solution of which we are a big proponent is good-quality, participating, whole-life insurance policies that have a long-term care rider. By using this type of solution, clients are not faced with the “use it or lose it” scenario of paying long-term care premiums, which may potentially increase in price, and then never making a claim.

If you purchased the limited-pay, whole-life policy, you have the potential of having a policy where you not only have your life insurance paid up, but you have your long-term care paid up as well. At some point in time, you or your beneficiaries may be able to tap those policies for cash value, long-term care benefits, or death benefits.

Take a look at some of the material we have to offer on life insurance policies with long-term care riders. If you have any questions, feel free to give us a call.

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS. Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS.

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